I've no experience on the B737-200, only the B737-300. The low Flap settings available are not necessarily applicable to Takeoff considerations, but may have other useful functions.
On the B777 for example, Flaps 1 has no use for Takeoff (standing by for a blast for someone who uses it), Flaps 5 is the lowest used. Where it IS useful, particularly as the later and heavier B777s have high manoeuvering speeds, is for Holding, where the clean holding speed exceeds the limit for the pattern in use, and when a dispensation against the 250 Kt limit below 10000 ft cannot be obtained, Flaps 1 becomes a necessity (Definately NOT recommended in iceing conditions).
Regards,
Old Smokey